Apple Inc (AAPL) Stock Sees Biggest After-Earnings Move; Share Price To Reach 3-Digit Mark

Investor sentiment on Apple Inc stock has improved following the company's official announcement of its Q4 FY2014 earnings. Apple has beaten analyst expectations by posting revenue of $42.1 billion and net profit of $8.5 billion in the last quarter of the fiscal year of 2014. In the same quarter of 2013, the company generated $37.5 billion with net profit of $7.5 billion. The surge in revenue was attributed to the debut of Apple's latest iPhones, the iPhone 6 and iPhone 6 Plus.

In a press release, Apple CEO Tim Cook said the fiscal year 2014 has set records including the company's biggest iPhone launch last month. Cook added that Apple is heading into the holiday quarter "amazing innovations" and the company's "strongest product lineup ever." The Apple chief also expressed his excitement for the upcoming Apple Watch in 2015 and other products the company has lined up for next year.

Apple CFO Luca Maestri revealed that the company's strong performance has driven its earnings per share to grow 20 percent with a record-breaking $13.3 billion cash flow from operations in the recent quarter. The company expects revenue to be between $63.5 billion and $66.5 billion in the first quarter of fiscal year 2015.

Despite strong iPhone sales, Apple's iPad sales continue to lag with only 12.3 million units sold in the fiscal fourth quarter. The company has missed its target of 13 million iPads. Declining sales of iPads were attributed to tablet owner behaviour. Analysts think iPad consumers tend to hold on to their tablets longer than their smartphones.

Apple's strong earnings performance in the last quarter have option traders betting on the company to trigger the biggest move after posting earnings since April. According to the Wall Street Journal, options market activity indicates a movement of $4.01 in either direction. Apple's current stock price of $99.48, which is about a 4 percent move, marks the company's largest after-earnings move within the year.

In a CNBC report, OptionMonster's Pete Najarian said the positive sentiment will send Apple's stock price to the three-digit mark. He believes there is strong indication that Apple shares soar over $100. In the United States, Apple is the most widely held stock except in five states. In a report by San Francisco wealth advisory firm FutureAdvisor, Apple was picked as the most favourite stock among individual investors in America except for Wyoming, Arkansas, Washington, North Dakota and West Virginia.